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NBA EUROPE LIVE TOUR MEDIA CONFERENCE
March 27, 2008
COMMISSIONER STERN: It's a pleasure to announce that four NBA teams will tour Europe for the third consecutive year as part of the 2008 NBA Europe Live, presented by our partner, EA Sports, in partnership Euroleague basketball with the.
On October 17 in Barcelona at the Palau Sant Jordi. This continues our goal to increase the fan base for basketball throughout Europe, and we're going to be playing in four great European cities.
Bring us up to 48 games that we will have played in different European cities, and there seems to be a growing appreciation for our game.
None of this would be possible without the participation by EA Sports increasingly. As we've had globalization of our game in television, we've also had expansion of our game through digital growth, on-line gaming and cartridge gaming, and EA Sports with their NBA programming and other great sports programming has been a leader in this field. So we're very appreciative of that. It's my pleasure to introduce Joel Linzner who will talk about it.
JOEL LINZNER: Thank you very much, David. I appreciate the kind words, and I just want to reiterate for everybody on the call that all of us at EA Sports are really excited to be able to extend our partnership with the NBA for now a third consecutive year on this initiative.
We like to participate because this particular opportunity not only allows the NBA so expand its global footprint, but also it allows fans across Europe to connect the excitement of NBA live games with the virtual experience in the NBA Live video game, which is now really the second best selling EA Sports franchise in several European countries. It's really the perfect launch vehicle for one of our most important titles.
Tens of millions of people around the world are linked by their passion for video games, and like sports, we have our own culture and we have our own jargon and we have our own language that transcends national borders. When you think of when you combine these two forms of entertainment, live sports with video gaming, it's a really creative and powerful sporting experience in and of itself.
Like the NBA, we're committed to globalizing our business, and just as we've done with our future franchiser over the years, we are excited about expanding our brand with initiatives like this in Europe and initiatives that we're working on with the NBA in Asia, and we're just really pleased to be able to extend our partnership with NBA Europe Live for this third year. Thank you.
Q. Mr. Stern, if you could just talk about specifically with the Heat, what made them an appealing team to choose as one of the four teams going to Europe for the preseason?
COMMISSIONER STERN: Well, we knew they were going to have a very high level of attraction, and they expressed a strong interest to travel, which they haven't done much before. And the Heat brand for us is an important brand coming off their championship. So people are interested in the name. Dwyane Wade is an enormous attraction, and obviously Pat Riley is also a global attraction. So we think that they will bring a lot of interest to the games wherever they're played.
Q. David, a similar question along those lines. The allure of the Hornets as a European team, and what does this do to tell the world, not just the nation, about New Orleans as a basketball community?
COMMISSIONER STERN: It served kind of interesting purposes going in both directions as you've alluded to. We had a most extraordinary experience in New Orleans All-Star weekend, and it gave the world an opportunity to get a completely different look at New Orleans, and it was a great look.
At the same time, while we were talking about Katrina and its aftermath and a great All-Star weekend, maybe enough attention wasn't focused on the fact that we have one of the winningest teams in the NBA and in the West. I mean, first place yet, everybody? They're having a great year.
So as a result, it also gives us the opportunity to showcase the teams, but at the same time to use NBA Europe Live to focus again on the team and the city as the television and as the on-the-ground promotion focuses on it, and I think it gives us an additional opportunity to deal with the city in a positive way as we encourage both New Orleans and the city to work as hard as they can to make sure that the current arrangement that's in place is extended for simply more than another year.
Q. Quick question about Europe. You've done the preseason thing for a few years now. Where do you go from here? Is it regular season? What's next?
COMMISSIONER STERN: I've got to teach you about the meaning of the word friendly. I think friendly is a historically known format outside of the United States, and it works well for us, these friendlies. It puts less economic stress on what we do. The fans fill the arenas and the players and fans get to know each other.
I think that now that we do have arenas like O2 World and O2, we may have the economic base, based upon suites, club seats and the like, to support the regular season games.
Historically people forget that we were the first league to play games outside of North America, regular season games. Going back 18 years, I accompanied the Utah Jazz and the Phoenix Suns to two games in Tokyo. You haven't lived until the elevator door opens and the Japanese fans see Mark Eaton standing there. He was like Gulliver. It was terrific.
But that was the only market historically that could support our games on a regular season basis. But now with the changes in the economic environment, particularly the dollar versus European currencies, and the advent of new arenas, I think regular season becomes a possibility.
But so far the friendlies are working for us.
Q. NHL opened overseas, MLB Opens overseas. Can we have that here perhaps in the NBA?
COMMISSIONER STERN: That doesn't define us. We did that 18 years ago. We might, we might not, but that's not a goal unto itself. It doesn't offer any particular strategic benefit. We rather like the opportunity of our teams to go in a more relaxed setting during their training period where the players can actually enjoy and partake a bit of the country to which they go, feel a little more relaxed in their interaction with the fans. We think that really helps our business.
We will get the regular season eventually, but we don't hold that up as better for us or even for our fans than the friendlies.
Q. My question is about Abe Pollin. I believe in 1980 and 1979 he brought the Bullets over to China so I think he's always been open to this kind of thing. Did he approach the NBA?
COMMISSIONER STERN: We approach them. Abe has always -- Abe understood international before we understood international, both in China and in Israel. He was a pioneer for us, and we really thought, this team hasn't traveled. We anticipated that Caron Butler and Gilbert Arenas would be healthier. With Antawn Jamison, and obviously being a team in the playoffs, you know, we just thought there was time for Washington, and it happens to be, as Abe has pointed out to me at least several times each year in the last 25 years, the capital of our country. So I said, okay, guys, it's time, let's go. And we couldn't be more pleased.
Q. I was wondering if there are any advertising opportunities or new advertising opportunities being created in Europe.
COMMISSIONER STERN: Well, there are. The sponsorship of these games, number one; the partners here with the -- in addition to the presenting partner, we've already contracted with Adidas, Champion, Coca-Cola, Spaulding, and we -- on the televising of these games, on the promotional opportunities around them, we have as many advertising opportunities as we can find sponsors for, I can assure you. This is a huge opportunity for us.
And one of the reasons we're into our third year was so that we can go there comfortably and let sponsors in the market know that this is not a one-shot opportunity but a continuing NBA presence there.
And so we're not in a hurry, we're comfortable with what we're doing, but clearly we're seeking to demonstrate a regularity that will cause sponsors to want to be associated with these tours and the continued opportunity presented by the broadcasting of our games from Europe really, country by country by country.
Q. Of course I don't want to keep you on the line with just my questions, but are these new sponsors or returning sponsors?
COMMISSIONER STERN: These are returning sponsors, and once we solidify the base and announce these dates, we will be going country by country in Europe and seeing what additional sponsors we will be able to add.
We did a pretty intense sponsorship lineup last time. We had 23 sponsors last time. Some were Turkish, some were Italian, some were Spanish, some were UK-based. I'm leaving one country out. No, I guess that's right. We were four countries.
We totally expect that we will have similar success this year, but it's best to announce it so that it has a firmness to it, and because of the success of O2 just as a building and now the opening of O2 World, together with Palau Sant Jordi, which we helped open up back in 1992, I guess, we hope to have a similar lineup of clients.
Q. So are you taking a different approach in any way, or is there anything new or multi-platform?
COMMISSIONER STERN: It's completely multi-platform. We've been putting more emphasis on digital. Some months we have more visitors to our website from outside the U.S. than from within, and the major difference this year is we're not having training camps there. They didn't really seem to achieve the desired result for us, and so we've cut back to the games instead of training camp. Other than that, we're out there about to start pounding the pavement. We're looking forward to some extraordinary success.
Of course one of the things we have done which we're going to increase a little bit is the number of grass-roots initiatives leading up to the games. We'll be announcing those because that goes really beyond the games but really to involve communities in the sport generally. We will be announcing relatively shortly over the summer to have a number of grass-roots initiatives that will enable sponsors to participate, as well, whether they're clinics or tournaments or visits by legends or visits by current players. There will be a long list of things yet to be announced, of course, in all four countries.
Q. And is this the most in-depth effort that you've sort of undertaken?
COMMISSIONER STERN: No, this is actually -- last year I accompanied teams to Istanbul, London, Rome and Madrid, and then we actually played one in Malaga. So this is really not so much about being more extensive but being more regular and more continuous and demonstrating our commitment to Europe.
Q. I just wanted to ask you, with all due respect to the topic of your call here, just your impression of and reaction to the situation at Madison Square Garden with the apparent change of power there. And also, have you been asked for any input and have you given any input on the changes that appear to be occurring?
COMMISSIONER STERN: I don't know for a fact that anything is occurring, and the subject of my asks and my inputs would always be covered by the commissioner-owner privilege, as you know. But thank you for asking.
Q. In terms of your priorities with franchises now, I know you have a situation in Seattle to deal with and perhaps New Orleans with some attendance problems. Where does the lack of success of the Knicks rank on your broad list of priorities?
COMMISSIONER STERN: No different than it ranks when other franchises have years or periods of years that they don't do well. It's only the people in the city where a team isn't doing well that I think it rises to the top of our priority list. It's just the reality of having a team be weak. Some teams aren't going to do as well as others and some are going to have very bad patches.
Q. You made some comments recently where you expressed some optimism that things would change there, and I wonder, what was the impetus for those comments?
COMMISSIONER STERN: The wellspring of optimism that resides within me that each year there's a renewal presented by the draft and by the beginning of the right of renewal, which we call the exhibition season. And I do know that the ownership of the Knicks are committed to improving the team. It's just my perpetually optimistic self.
Q. Did the Heat approach you about going to Europe, or how did that come about?
COMMISSIONER STERN: I'm sitting here without the right personnel to answer that correctly. I believe that we have approached the Heat before and that they indicated to us that they were now ready to consider this. We said great, and we pounced on it.
Q. How would you react if the Knicks do, in fact, hire Donnie Walsh?
COMMISSIONER STERN: How I would react? I think he's a basketball lifer and professional. I've often, when I needed some basketball advice, he's on a short list of people that I pick up the phone and call around the league for just basketball matters, and he works and works and works.
Q. It sounds like you might be doing cartwheels down 5th Avenue if --
COMMISSIONER STERN: No, first of all, I would injure myself if I did that. And second of all, you just asked me a question about what I think about him, and I think he's a professional in the truest sense of the word. But I don't know any more than you know about what's going on.
Q. Let me assure you, by the way, I was walking with Mark Eaton to the bus to the event at the All-Star game, and those odd looks, they give them here.
COMMISSIONER STERN: They get them in America, too, I know.
Q. Let me tap into some of that guyser of optimism you have --
COMMISSIONER STERN: Come on, we're going to Europe.
Q. I know you're going to Europe.
COMMISSIONER STERN: Stop it.
Q. It's related to Europe. You were just talking about basketball outside of North America. You spoke about Japan earlier. What role, if any, should governing bodies, leagues, players, particularly yours, which are going to be some of the most recognizable faces at the Olympics, play with regard to human rights in China?
COMMISSIONER STERN: My view is that individuals should be free to express themselves on these matters, and we've made that clear with respect to our players. We are obviously interested in the entire situation, with the boycott and the like, and obviously we think that the previews to the boycotts did not succeed, and I don't believe in punishing athletes who we urge as a nation and internationally to do whatever they can to devote themselves above all in participating in these Olympics.
We think that there are different ends of the spectrum that people should be encouraged to speak out and allowed to, but on the other hand the Olympics should at least be held up as something that brings people together, encourages the individual athletes to compete and fosters a sense of patriotism for the countries that they represent.
Q. Did you ever see anything like what's going on in the Western Conference, and are you enjoying this? What's your sense of --
COMMISSIONER STERN: I think that EA is going to have to change their NBA Live. It's the most exciting race we've ever had in the history, I think, of the NBA. We're coming up on the last week in March at a time when a winning streak or a losing streak can completely change the configuration of who makes the playoffs and how they're seeded for the playoffs.
If you could dream about a scenario, we wouldn't have the audacity to dream about this. It's that good. And not to neglect our friends in the East, you see the turnaround in Philadelphia, you see the prospect of Washington getting both Caron Butler and Gilbert Arenas back for the playoffs, although the records are nothing to be spectacularly praised. But to see what's going on even for the eighth spot and the prospect of Atlanta now competing for a place, we're really having a very great year down the stretch here.
Q. When you see the tightness of this race and the talk, the idea that maybe certain teams could miss out on the playoffs while the East could have losing teams at the bottom, has this made you give any more thought to the idea of the top 16 irrespective of conference?
COMMISSIONER STERN: In a word, no.
Q. And why not?
COMMISSIONER STERN: Because I think you're picking on us. No one asks Bud that when an American League division winner has a much worse record than someone in the other league. No one asks if they're going to change league alignment. Even though an NFL team that is 9 and 7 makes the playoffs, no one says we shouldn't have them but we should have the team that's won 10 games or 11 games.
This is just year-end fun that people have with us. Actually we appreciate it because it means they're interested, they're following us and it makes it more interesting. And I kind of enjoy it.
But it doesn't really change the fundamental structure that we have, and it isn't something that we should respond to. In our 60-year old league, to do that on a five-year cycle wouldn't make a lot of sense.
Q. Where are the Euroleague teams here?
COMMISSIONER STERN: Well, we've been working with the Euroleague on this, and actually because of a combination of logistics and really the promoters and what we thought would sell best with respect to ticket sales and publicity, it was decided in these cities it was time to try the NBA teams alone.
But we're supported by the Euroleague on this tour, and my guess is that a year from now we'll be doing something a little different that does involve the Euroleague teams. So this is the third year hopefully of a much longer approach.
Q. They said they didn't want to put their teams in it this year, that there was no money in it?
COMMISSIONER STERN: They didn't think it would be possible for them, but for important, the promoters thought that we would do much better if this year at this time we had just NBA team against NBA team.
Q. The other thing --
COMMISSIONER STERN: That wasn't true last year in Istanbul, now was it in Rome, nor was it in Spain, but now we're in Germany and France and Barcelona. So the thought was that we should try it this way. Nothing profound about it, just the way it broke.
Q. Are you going to require some of these teams such as Miami with Dwyane Wade when he goes to the Olympics, are they then required to go on this trip? Would you give anyone a pass if they don't want to go back overseas so soon?
COMMISSIONER STERN: I don't know what back overseas means. Do you mean flying from Miami to Paris instead of flying from Miami to Portland?
Q. That sounds overseas.
COMMISSIONER STERN: But why are you behaving like such an American? Overseas, it's sort of like, oh, my God, it's so far. It's actually closer.
Seriously, that's something that since 1990 I've been trying to overcome. I think I've been doing it in the league, now I have to do it in the media. Flying overseas is not a major disruption. It's the same distance as flying cross-country. Water doesn't make it into a longer trip.
Seriously, help me out. Obviously you don't mean that so you must mean something else.
Q. What I mean is if someone like Dwyane Wade was going to be five weeks out of the country this summer, if he didn't want to go overseas --
COMMISSIONER STERN: If he didn't want to leave the country again?
Q. Yes. There are logistics involved --
COMMISSIONER STERN: There are no logistics involved. There's the same chartered plane, there are nicer hotels, there are more comfortable spaces, and it's in many cases an easier trip than a domestic trip. And that's what we're using these games to demonstrate to our players, many of whom had asked to go on it, asked to be assigned to these, and are asking me to schedule an All-Star game outside the country. So I just think it's important for us to not fall into some of the stereotypes here.
Q. And that will be 2011 or 2010?
COMMISSIONER STERN: Well, we'll have to see. Not '10 and probably not '11, and let's not talk about because it sort of gets things going. Whenever you're in trouble you just drop an All-Star game outside the U.S. and you can get a discussion going.
Q. Obviously going to Berlin, a guy like Dirk Nowitzski might be a hit over there. Was there any attempt at all to try to convince Mark Cuban that it's in their best interest, or did you just pretty much ignore him knowing he didn't want to be involved?
COMMISSIONER STERN: We had so many teams lined up that we didn't think it was necessary to make an issue there, and as a result we didn't approach the Mavs. At some point if we do need teams, we'll enact rules sufficient to require attendance. But if that's the approach, we try to respect our owners' wishes to the greatest extent possible.
And we really are not unhappy to move away from the notion that we should be pushing players in countries to make sure we have a Spanish player in Spain and a French player in France. We've done that before, but honestly, we'd like to just -- given the fact that we have lots of teams, we'd like to demonstrate that basketball is basketball and that people will appreciate it.
And in addition, you know, if we had picked Memphis with the anticipation that Pau Gasol was going, we would have been wrong. So we're not going to force teams to go at this point.
Q. Dealing with a foreign-born MVP, are you disappointed that you don't even have the chance to showcase him?
COMMISSIONER STERN: Yeah, I think it would be great to showcase Dirk. I mean, he's a spectacular player and represents that generation of elite European athletes who have demonstrated that they can achieve, in America's game, at the highest level. I think it would be great to have him at our -- to have such a talent to showcase.
But honestly, I really do think that day will come, and we just don't have to force it at this point.
Q. My question is about kind of the blogging that we're seeing. It's raising issues here and there, whether it's the Mavericks -- we all know and love Gilbert for his willingness to open up. He writes some interesting things in his blogs. Where do you see that going, I guess, long-term with players expressing themselves in various ways or NBA policies in terms of how they handle bloggers versus so-called traditional media?
COMMISSIONER STERN: I would say that there is not going to be a designation in the future between bloggers and traditional media. The word "traditional media" is going to be viewed ultimately as quaint because players, whether they express themselves in a column in USA Today or on NBA.com or on their own blog, that's going to be the way that they're going to be expressing themselves.
I think it is true that reporters are going to blog or be bloggers. It is part of their assignment from their newspapers or independently. I think they're going to have to make judgments ultimately on something quantitative as what their circulation is, rather than whether it's on a piece of paper or available on-line or available exclusively on-line.
So if we issue a media credential, for example, to somebody, the NBA does, and that person is a blogger or that person is a journalist who goes to print, that credential will be honored at our teams.
Q. Back to the Mavericks in terms of what their policy has been of late.
COMMISSIONER STERN: Yes, and the Mavericks have admitted the blogger to their locker room after the expression about politics.
Q. Did you get a chance to read Gilbert's latest offering?
COMMISSIONER STERN: I must confess I missed it. Do you want to tell me about it?
Q. It was his best ever. He touched on a number of things, a little bit about an injury, and talked about maybe wrapping his car around a pole. He opened up.
COMMISSIONER STERN: I think he's opened up about wrapping his car around a pole. I think he's just as frustrated as any great athlete would be, but hopefully he'll be able to take that frustration out in a positive way playing basketball during the playoffs.
Q. Is he one of the more unique personalities you've come across as your time as commissioner in this league?
COMMISSIONER STERN: That's a fair way to describe it. He's fun, and he's good for the league in a very positive way.
Q. You have talked about expanding to Europe. Have you considered expanding your 32 teams, two more teams in the States? And given the situation in Seattle, would Seattle be on that list of potential expansion cities such as Charlotte a few years ago?
COMMISSIONER STERN: I think in fairness to your question, I think what I'd like to do is to say that in light of the swirling events and the continuing litigation and the to-and-fro with respect to the Sonics, I'd like to impose a gag on myself and allow speculation to grow in whatever way is constructive.
The one thing I would say is that we'd like -- I want to make it clear that the Sonics' proposed move is not a question of fan support but an issue of arena capability, and the path by which we got to the place was an issue with a move, whether they proposed to move.
But I think that our history speaks for itself, and depending upon the circumstances under which we depart cities, that has something to do with our ability and willingness to move.
Q. Regardless of that, would you consider expansion of 32 teams?
COMMISSIONER STERN: You know, it's not tops on our list. There's a very strong owner reaction at the present time to expansion. But at the same time, there is a very strong recognition because of the pressures of revenue sharing that in particular cities that currently can't support the teams, we should consider moving them to cities that can. I'm not totally on board with that approach, but it's increasingly gaining some steam amongst a strong group of owners.
Q. You were in Oklahoma City just two days ago touting the city and discussing staying in Oklahoma as a potential expansion for an NBA franchise. How is it possible for a franchise to move to a smaller U.S. market?
COMMISSIONER STERN: I'm going to continue my gag. I said what I was going to say out in Oklahoma, and I don't want to start -- I don't want to get specific here, either, other than to say that one of the things that we've done at the league and tried successfully to do is to find a way of operating our league that would support a team that was well-marriaged in markets the size of San Antonio, Memphis, Orlando, Portland, Salt Lake City, and in most cases single-sport cities, so you can understand that that's not a subject that scares us.
Q. As a follow-up, with regards to the upcoming Board of Governors vote, considering how the owners have voted on the past three applications, the two being unanimous, the other being 28 to 1, what do you make of their pattern?
COMMISSIONER STERN: I don't make anything of it. I didn't even remember it until you told me.
Q. Under the auspices of "when in Rome," or I guess in this place, Paris, Barcelona, London and Berlin, any shot -- and I know how territorial you are about your uniforms, but any chance of selling some advertising space on the uniforms?
COMMISSIONER STERN: You know, we haven't done it. We're mindful of the fact that baseball just did it, and it -- if you have an offer to make, you know my number and my email address.
Our history has been we've tended to do things that have honored the local venue where we're playing with sort of modifications in uniforms, but we're mindful that in Europe sponsorship on uniforms is more common than it is here, and it's something we would consider but we're not planning to.
Joel, since nobody wanted to ask you any questions, would you like to make a final comment before I thank everybody?
JOEL LINZNER: Only to comment that it's a pleasure to hear you answer the press's questions.
COMMISSIONER STERN: It's a pleasure to be associated with Electronic Arts. I think EA Sports is a leader in this field, and we couldn't be happier to be with you again, and I want to thank you and all of the media who have joined us for this. Thank you very much.
JOEL LINZNER: My pleasure, and hopefully we'll do it again.
End of FastScripts
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